BTC Market Analysis
In 2014 bear market, when BTC found new lows it retraced 0.618 fib and continued to go down again again.
After It settled around $160-200, 1 year accumulation period started. (January and October 2015)
It created a new bullish channel at the end of accumulation period (Green channel)
Until Bitcoin reached 20k, all of the retraces (7 times) found support at 0.618 fib.
If we found support at 0.618 fib ($12.347) we could say that bull trend still in play. Now trend turned bearish like 2014 market.
After the first low at 6k, it retraced 0.618 fib ($11.350) and rejected again.
I think we are ready to find new lows before start a new rally. Potential new low should be around $4500 then we can go and test 11k again. (0.618 fib of new low)
When we draw lines (blue) from the 2014 top to the tops of 2017 trend (Pink channel), you can see the supports around
$9800 (broken)
$6400 (still alive)
$3800-4000
In the current bearish trend we also have descending broadening wedge and big falling wedge.
After It settled around $160-200, 1 year accumulation period started. (January and October 2015)
It created a new bullish channel at the end of accumulation period (Green channel)
Until Bitcoin reached 20k, all of the retraces (7 times) found support at 0.618 fib.
If we found support at 0.618 fib ($12.347) we could say that bull trend still in play. Now trend turned bearish like 2014 market.
After the first low at 6k, it retraced 0.618 fib ($11.350) and rejected again.
I think we are ready to find new lows before start a new rally. Potential new low should be around $4500 then we can go and test 11k again. (0.618 fib of new low)
When we draw lines (blue) from the 2014 top to the tops of 2017 trend (Pink channel), you can see the supports around
$9800 (broken)
$6400 (still alive)
$3800-4000
In the current bearish trend we also have descending broadening wedge and big falling wedge.
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